Employment Flash News No. 11/2018

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LEGISLATION

News on employment stimulation

Emergency Ordinance no. 60/2018 for the amendment of several normative acts in the field of stimulation of employment (“Emergency Ordinance No. 60/2018“) was published in the Official Gazette no. 577 dated July 9, 2018.

Law no. 76/2002  on the unemployment insurance system and employment stimulation (“Law no. 76/2002“) is amended by establishing an amount of 1,000 lei not subject to income tax representing the activation premium granted to unemployed persons (that are registered with the employment agencies for more than 30 days and do not benefit from unemployment indemnity) upon full-time employment for a duration of more than 3 months (instead of 500 lei as stipulated in the previous regulation). The new regulation also provides that the activation premium shall not be cumulated with the insertion premium and installation premium.

The same law is amended by setting the amount of 2,250 lei/month/graduate (compared to 900 lei as stipulated in the previous regulation), for a period of 12 months, to be paid to employers who hire, for an indefinite period of time, graduates of certain educational institutions.

Another amendment to Law no. 76/2002 establishes an amount of 2,250 lei/month/employed person (compared to 900 lei as stipulated in the previous regulation), for a period of 12 months, to be paid to employers who hire, for an indefinite period, unemployed persons of over 45 years of age, unemployed persons who are sole supporters of single-parent families, long-term unemployed or NEET young people, provided that the employment or service relationship is maintained for at least 18 months.

Furthermore, to employers who hire, according to the law, unemployed who in 5 years calculated as of the date of employment meet, according to the law, the conditions for applying for partial early retirement or age retirement (if they do not qualify for the partial early retirement pension) an amount of 2,250 lei/month/employed person (compared to 900 lei as stipulated in the previous regulation) shall be paid on a monthly basis, during the employment period (and until the respective conditions are met).

Also, until the expiry of the duration of the solidarity contract, for each person included in the category of young people at risk of social marginalization and who benefit from social personalized accompaniment,  insertion employers shall benefit from an amount equal to the basic salary established at the date of employment of the young people,  on a monthly basis from the unemployment insurance budget, but no more than four times the value of the social reference indicator  in force at the time of employment, compared to the previous regulation providing a maximum limits equivalent to twice the value of the social reference indicator.

Law no. 279/2005 regarding the apprenticeship at the workplace (“Law no. 279/2005“) establishes an amount of 2,250 lei/month (compared to 1,125 lei as stipulated in the previous regulation), to be provided from the unemployment insurance budget within the limits of the funds allocated for this purpose, for the employer who enters, according to the law, in an apprenticeship contract and the amount shall be paid upon request for the whole period of the apprenticeship contract.

Law no. 335/2013 concerning the performance of the internship for graduates of higher education (“Law No. 335/2013“) stipulates that the employer who concludes an internship contract, under the law, receives, upon request, during the period of the internship contract, an amount of 2,250 lei/month (compared to 1,350 lei as stipulated in the previous regulation), granted from the unemployment insurance budget within the limits of the funds allocated for this purpose.

Employers who, for granting the employment stimulation measures funded by the unemployment insurance budget, have concluded conventions or contracts with the territorial employment agencies or the Bucharest Municipality, according to Law no. 76/2002, Law no. 279/2005 and Law no. 335/2013, prior to the date of entry into force of Emergency Ordinance no. 60/2018, shall benefit from these incentive measures in the amounts provided by the legislation before the entry into force of the abovementioned amendments. Conventions and contracts concluded with the territorial employment agencies or the Bucharest Municipality, in progress at the date of entry into force of the Emergency Ordinance no. 60/2018, shall produce effects in accordance to the provisions of these normative acts in the form prior to the entry into force of these amendments.

Employers who request the incentive measures and conclude agreements or contracts with the territorial employment agencies or the Bucharest Municipality following the entry into force of this Emergency Ordinance no. 60/2018, shall benefit from this measures subject to the amendments brought by this emergency ordinance, regardless of whether the enrollment has been performed before or after its entry into force.

The provisions of the Emergency Ordinance no. 60/2018 entered into force on the date of their publication within the Official Gazette.

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